Manchester City’s Legal Battle: Mixed Outcome on APT Rules

Manchester City’s legal case against the Premier League over commercial deal regulations has concluded, resulting in a mixed outcome. City challenged the Premier League’s Associated Party Transaction (APT) rules which regulate deals between clubs and companies tied to their owners. The tribunal ruled that two aspects of the rules were unlawful, specifically regarding shareholder loans and amendments made in February but upheld most of the league’s regulations.

City’s owners, the Abu Dhabi-backed City Football Group argued that the APT rules violated UK competition law and were discriminatory by excluding shareholder loans from the scope of the rules. The tribunal agreed with this point, declaring the exclusion unlawful. However, the tribunal rejected the majority of City’s challenges, supporting the overall framework and purpose of the APT system.

The Premier League views the ruling as largely favorable, emphasizing that most of City’s objections were dismissed and that the rules aimed at preventing inflated commercial deals remain intact. City on the other hand, highlighted their success in proving certain aspects of the rules unlawful, calling it a violation of competition law. Clubs such as Chelsea, Newcastle and Everton supported Manchester City’s case.

In contrast, Manchester United, Liverpool and several others backed the Premier League’s position. Despite the tribunal’s ruling against certain parts of the APT system, the Premier League plans to amend its rules and avoid future legal conflicts. This case is separate from the 115 financial regulation breach charges City faces some dating back to 2009 which are still under review.

Both City and the Premier League have expressed contentment with the tribunal’s findings, although tensions between the league and the club remain high as City continues to challenge the league’s regulatory framework.